NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) and its wholly owned subsidiary Ithaca Energy (UK) Limited ("Ithaca" or the "Company"), an independent oil & gas company with exploration, development and production assets in the UK sector of the North Sea, is pleased to announce that it has closed on its previously announced transactions with Maersk Oil and Dyas on Stella and is now operator and therefore in control of the Stella development.

Ithaca paid Maersk Oil US$10 million at this final completion of its acquisition of the entire 33.33% working interest of Maersk Oil in Stella and the undeveloped satellite discovery Harrier and 50% working interest in Hurricane. Ithaca is now operator of all assets involved in the transaction. Ithaca shall pay Maersk Oil a further US$3 million at Field Development approval and US$5 million at first oil. Further details regarding this and related transactions may be found in the announcement dated October 28, 2009.

At the same time, Ithaca completed its sale to Dyas of 31.67% of Stella and in doing so received $8.7 million US dollars in final cash consideration (positively adjusted for working capital) from Dyas. This achieves full and final closing of the deals agreed with Dyas in October 2008 and April 2009.

Ithaca's equity positions in the blocks are:

* Assuming completion of the Challenger Minerals (North Sea) Limited transaction as announced on October 28, 2009.

Ithaca is currently finalising plans with its partners and contractors in order to commence the drilling of a well on the Stella discovery before the end of December, which will be the subject of a further announcement.

In accordance with AIM Guidelines, Lawrie Payne, MA Marine Geology (Alberta & Columbia) and Chairman of Ithaca Energy is the qualified person that has reviewed the technical information contained in this press release.

Not for Distribution to U.S. Newswire Services or for Dissemination in the United States

Forward-looking statements 
Some of the statements in this announcement are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of Ithaca Energy Inc. or its officers with respect to various matters. When used in this announcement, the words "expects," "believes," "anticipates," "plans," "may," "will," "should" and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to risks and uncertainties that could cause actual outcome to differ materially from those suggested by any such statements. These forward-looking statements speak only as of the date of this announcement. Ithaca Energy Inc. expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based except as required by applicable securities laws.

The term "boe" may be misleading, particularly if used in isolation. A boe conversion of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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